Victoria Flores-OriaOres
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Bitcoin The Gateway to Refuge in Chaotic Times
Welcome to my weekly space, Technological Projects in Blockchain. I write here for @DAO Labs from DAOVERSE, a #SocialMining platform. The rewards I earn on SocialMining can, if I wish, be transferred to Binance Exchange to participate in trading $BTC / $USDC .
Today’s topic is of interest to many especially here on the Binance Square platform, where most users seek information about Bitcoin. Alexis Trujillo the leader of our community in Dao Labs, penned a compelling article titled The Russia-Ukraine War and the Price of Bitcoin, which inspired me to craft my own piece.
The impact of wars on the price of Bitcoin.
As we know wars can generate economic instability, prompting investors to seek safe havens like Bitcoin to protect their capital. When global crises arise, uncertainty and fear increase the demand for decentralized assets, influencing the price of this cryptocurrency; this demand increases the value of Bitcoin, making it a valuable resource during global crises.
Let’s examine two examples of recent wars that have impacted Bitcoin prices
The Russia-Ukraine war which began in February 2022, caused Bitcoin's price to drop from approximately $44,500 to $39,000. However it recovered reaching $48,000 by March of the same year.
The conflict between Israel and Palestine in October 2023 also affected the price of Bitcoin, which fell from $28,000 to $26,500, rebounded, and rose to $73,000 in March 2024.
In both cases uncertainty and fear caused price declines. However, Bitcoin's rapid recovery demonstrates the confidence investors place in it, even in crises like these. Dear reader, what do you think?
Are cryptocurrencies a safe haven during war?
For me cryptocurrencies like Bitcoin can be a useful alternative in times of war and economic crisis; as they do not depend on governments or banks to preserve their value. While Bitcoin and Altcoins have their pros and cons like everything else, they are extremely volatile. Their prices can fluctuate dramatically, even during conflicts, making it hard to trust them entirely.
This could also explain why markets sometimes crash, causing investors to hesitate, caught in a dance of holding or withdrawing their investments. This ebb and flow, like ocean waves, prevents the stability that would generate greater confidence. But, ironically, this very instability is attractive to some. Perhaps the volatile nature of Bitcoin and altcoins is what draws investors to this world. Ultimately, whether cryptocurrencies are a safe haven depends on circumstances and individual perspectives on them. The answer lies within each of us, whether as ordinary users or investors.
My writings are not investment advice. Please take the time to do your own research (DYOR).
Today’s topic is of interest to many especially here on the Binance Square platform, where most users seek information about Bitcoin. Alexis Trujillo the leader of our community in Dao Labs, penned a compelling article titled The Russia-Ukraine War and the Price of Bitcoin, which inspired me to craft my own piece.
The impact of wars on the price of Bitcoin.
As we know wars can generate economic instability, prompting investors to seek safe havens like Bitcoin to protect their capital. When global crises arise, uncertainty and fear increase the demand for decentralized assets, influencing the price of this cryptocurrency; this demand increases the value of Bitcoin, making it a valuable resource during global crises.
Let’s examine two examples of recent wars that have impacted Bitcoin prices
The Russia-Ukraine war which began in February 2022, caused Bitcoin's price to drop from approximately $44,500 to $39,000. However it recovered reaching $48,000 by March of the same year.
The conflict between Israel and Palestine in October 2023 also affected the price of Bitcoin, which fell from $28,000 to $26,500, rebounded, and rose to $73,000 in March 2024.
In both cases uncertainty and fear caused price declines. However, Bitcoin's rapid recovery demonstrates the confidence investors place in it, even in crises like these. Dear reader, what do you think?
Are cryptocurrencies a safe haven during war?
For me cryptocurrencies like Bitcoin can be a useful alternative in times of war and economic crisis; as they do not depend on governments or banks to preserve their value. While Bitcoin and Altcoins have their pros and cons like everything else, they are extremely volatile. Their prices can fluctuate dramatically, even during conflicts, making it hard to trust them entirely.
This could also explain why markets sometimes crash, causing investors to hesitate, caught in a dance of holding or withdrawing their investments. This ebb and flow, like ocean waves, prevents the stability that would generate greater confidence. But, ironically, this very instability is attractive to some. Perhaps the volatile nature of Bitcoin and altcoins is what draws investors to this world. Ultimately, whether cryptocurrencies are a safe haven depends on circumstances and individual perspectives on them. The answer lies within each of us, whether as ordinary users or investors.
My writings are not investment advice. Please take the time to do your own research (DYOR).
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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